Its shares have rebounded from last week’s disastrous performance stopper power (NASDAQ: Delivery) They race top right out of the gate this morning. For those who expect that the company has announced something promising – think again. There was no news showing the stock’s movement. Instead, investors are simply buying in advance of the company’s business update scheduled for tomorrow.
As of 10:09 a.m. ET, Plug Power shares were up 12.5%.
Charged with the possibility of hearing something positive
Plug Power is hosting its annual business update tomorrow, and investors expect the company will have some encouraging comments about the company’s future. Furthermore, investors assume that the stock will rise after the business announcement, hence their interest in buying the stock now before it rises tomorrow.
With the company poised to receive a significant influx of cash — up to $1 billion — by issuing new shares, there is no longer a worry that the company will struggle to keep its lights on, a consideration raised by management when it announced third-quarter 2023 financial results. So, tomorrow investors will likely hear about management’s plan to better handle the headwinds it has faced recently — and perhaps offer a more optimistic outlook than management’s comment from its third-quarter 2023 earnings report indicating it believes it “expects to generate operating losses for the third quarter of Year 2023.” The foreseeable future.”
What should potential investors in Plug Power do now?
Sure, shares are up, but hydrogen investors with Plug Power on their watchlists shouldn’t take today’s stock action as an indication that things are looking up for the battered fuel cell stock. It’s worth noting what management has to say tomorrow, but the company’s fundamentals need to improve significantly before smart investors will even consider hitting the buy button.
Should you invest $1,000 in Plug Power now?
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Scott Levin has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why are Plug Power shares rising today? Originally published by The Motley Fool